US management faces changes due to European unification in 1992

It is noted that the creation of a single market by the European Community (EC) is changing the competitive position of firms in member countries relative to US firms in markets throughout the world. In theory EC 1992 will make Europe a more attractive place in which to invest, and this will displace some investment that would have been made in the US. Since investment is a significant factor in determining long-run growth in productivity and living standards, a reduction in investment in US plants and equipment could prove detrimental to US businesses. Changes in the social dimension could directly affect the competitiveness of European firms, but even more important is their potential for altering US labor standards and benefits by the example they set. As time passes since the conception of EC 1992, US corporate leaders are beginning to make changes and ask more questions.<
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